DeFi Unbinding and Tax Fantasy: Are the two more crypto cards Trump has added worth looking forward to?

Author: flowie, ChainCatcher

Although the market has been bullish for a day because of Trump's strategic reserve declaration, the Trump administration seems to have not given up on playing the crypto card.

Yesterday, two consecutive policy turnover news that may be beneficial to encryption were released.

First, David Sacks, the White House AI and encryption director, said on the X platform that the White House will support the Congressional Review Act to revoke the "DeFi Broker Rules."

This morning, the U.S. Senate has passed the Congressional Review Act by 70 to 27 to revoke the DeFi broker rules and the resolution will become law after the House of Representatives and the signing of President Trump.

Second, Alpine Fox LP founder Mike Alfred revealed on X platform that at the White House crypto summit on Friday, the Trump administration may announce the cancellation of the zero capital gains tax policy for cryptocurrency sales.

If these two major policies can be successfully cancelled, it will have considerable benefits to the crypto market. But how much is the policy implementation? Especially after experiencing Trump's "slogan-style" rescue of the market, are these policy shifts worth looking forward to?

****The "regulatory rules" that 75 companies boycott are about to be

abolished, and**** De Fi is recovering

The “DeFi Broker Rules” are seen as a heavy blow to encryption by the Biden administration at the last moment of its term.

The rule was released on December 27 last year and is a regulatory framework initiated by the U.S. Treasury Department and the Internal Revenue Service (IRS). The purpose is to expand the definition of "broker" and incorporate DeFi into the traditional financial regulatory framework, requiring the DeFi platform to implement compliance measures such as tax reporting, KYC (know your customers) and anti-money laundering.

After the rule was released, it aroused strong opposition from the crypto industry. The US cryptocurrency lobby group (Blockchain Association) filed a lawsuit, and 75 crypto companies including Coinbase, a16z and Kraken jointly wrote to Congress, calling for the repeal of the rule.

The reasons for opposition are mainly concentrated in these three aspects:

First of all, there is a privacy issue. The rules require the DeFi platform to collect user information, which exceeds the legal authority of the IRS;

The second is to restrict the US DeFi innovation, after all, it increases the cost of compliance of DeFi enterprises.

In addition, it is also controversial how to implement it. DeFi platforms are mostly decentralized applications. If the compliance requirements of traditional financial institutions are to be implemented, there are also ambiguity in the scope of supervision, such as the rules only apply to "front-end service providers" rather than the agreement itself, but it is controversial how to define "front-end".

But the rule, seen as a hindrance of DeFi innovation, has been pushed to be abolished since Trump took office.

On February 26, the U.S. House of Representatives Means and Means Committee passed a resolution with a vote of 26 to 16, intending to repeal the rule.

This morning, the U.S. Senate passed a resolution to revoke the rule by 70 to 27. After a full House vote, the resolution will be submitted to the president for signature and become law. At present, David Sacks, director of AI and encryption at the White House has made it clear that the White House supports repealing the rule.

Judging from the current progress, the possibility of DeFi broker rules being abolished is high.

Perhaps affected by the news that the "DeFi broker rules" are about to be abolished, the DeFi sector shows signs of recovery, especially the tokens for the DeFi protocols closely related to US concept coins, DeFi protocols closely related to capital such as the Trump family and BlackRock have risen significantly.

According to the RootData market sector, as of press time, AAVE, LINK, UNI, and ONDO's 24-hour gains were 26.28%, 12.91%, 9.25% and 9.11% respectively. (In addition to being abolished by the "DeFi Broker Rules", AAVE may also be more affected by its repurchase and new token plans.)

****The exemption of crypto gains tax that has been "hyped" may still be

a "pie"****

In addition to the abolition of the “DeFi Broker Rules” rules, the cancellation of the zero-capital gains tax policy for cryptocurrency sales may be more worth looking forward to.

A brief understanding of zero capital gains tax on cryptocurrency sales means that there is no tax on the profits made by cryptocurrency transactions. For example, if a cryptocurrency user buys Bitcoin and sells it after it rises, he does not have to pay tax on the money he earns.

Different countries will have different policy differences, and Singapore will exempt it from levied only a 17% income tax on cryptocurrencies identified as commercial income.

In the United States, if you make money by buying and selling cryptocurrencies, you have to pay capital gains tax. The tax rate varies according to the holding time: within one year of holding: tax is paid at the ordinary income tax rate, with a tax rate of 10%-37%. Hold for more than one year: the tax rate is relatively low, up to 20%.

In addition, in addition to buying and selling, mining, pledging, paying wages in cryptocurrency, etc., all must be taxed based on income.

Whether for crypto users or businesses, canceling this tax will undoubtedly reduce costs. For the United States, sacrificing the benefits of this part of the tax can attract crypto projects and funds to flow into the United States, pushing it to become the "crypto capital."

But now, compared with the extremely high probability of abolition of the " DeFi broker rules", the news that the Trump administration announced the abolition of the zero-capital gains tax policy for cryptocurrency sales on Friday is extremely uncertain in terms of authenticity and implementation.

Alpine Fox LP founder Mike Alfred has deleted the tweet as the original message publisher. Cinneamhain Ventures partner Adam Cochran also said he was repeatedly blocked during the process of repeatedly verifying the authenticity with Mike.

This is not the first time that “cancels zero capital gains tax on cryptocurrency sales.”

In November last year, Trump proposed to cancel the capital gains tax on issuing cryptocurrencies by US companies, a proposal that triggered a sharp rise in altcoins. In January this year, Trump's second son Eric Trump once again claimed that local crypto projects in the United States (such as XRP and HBAR) will enjoy zero capital gains tax in the future, while non-U.S. projects may face a 30% tax rate.

However, it is not difficult to cancel the zero-capital gains tax policy for cryptocurrency sales, especially in the short term.

Adam Cochran stressed that the president cannot bypass Congress and directly amend the tax laws. Satoshi Action Fund analyzed as early as January that completely abolishing the crypto tax is unrealistic in the short term, but some small changes can be pursued, such as setting a "minimum exemption."

John E Deaton, founder of CryptoLawUS, also pointed out that even if local American projects enjoy zero capital gains tax, how to define "American projects" is still a problem.